Last week, steelmakers left purchase prices for scrap unchanged at UAH 6,800/mt. The profitability of purchases is above the standard value. In such conditions, factories can afford to raise purchase prices on the domestic market.
The prices of scrap collecting companies for grade 3 scrap in the regions were at the level of UAH 6.27-6.32 thousand per ton. The upper border of the price range prevails in the southeastern regions of the country.
Supplies to steel plants
Scrap supplies to metallurgical plants (March 4 – 10) decreased to 55 thousand tons. For comparison: in the previous week (February 25 – March 3) there were 61.7 thousand tons. The demand for scrap was 58.3 thousand tons. the satisfaction of metal plants' needs for scrap last week amounted to 95.3%.
Remains in ports
Scrap stocks in ports increased to 1.7 thousand tons. For comparison: in the previous week there were 1.3 thousand tons.
Dynamics of steel smelting
Steel production for March 4 – 10 increased to 400 thousand tons. For comparison: in the previous week (February 25 – March 3) there were 397 thousand tons.
Warehouse stocks of scrap at metallurgical enterprises
Remains of scrap in warehouses of metallurgical plants decreased to 177 thousand tons. For comparison: the previous week there were 205 thousand tons. Inventories in working days are 20 days, which is significantly higher than the standard value.
Domestic scrap price forecast
In the coming week, metal plants will keep domestic prices unchanged. The desire of buyers to reduce prices is restrained by a significant drop in scrap traffic and an increase in prices in external directions. In the future, the factories will be forced to increase domestic prices against the background of the rise in the cost of rolled products and the growth in the cost of scrap exported from Ukraine. The forecasted average price next week is UAH 6800/mt.
Source: "Ukrpromvneshexpertiza"
